Straddles are very common Options Trade. In Options world that's what they talk about all day.
Most people who trade, "lose" money by trading. There are tons of posts here where people lost money by trading and now asking tax information, reporting tax losses. In media there are many news reports how someone made money in stock XYZ but they don't mention how many lost money. More importantly people who lose money don't want to admit losses and be mentioned to their friends/family and esp. to whole world.
Why people lose money by trading
1. Lack of Knowledge (knowledge does NOT mean what straddle is, Knowledge means all aspects of trade and mechanism of trade)
2. Lack of Planning
3. Lack of discipline
If I have Not traded straddle does not mean I am bit naive or something like other poster (tagteam) mentioned idle curiosity. It means it was out of my comfort zone. Now I am more comfortable with complicating trades, I should know all aspect of trade. By the end of day in taxable account after Tax profits count. On surface Straddles sound exotic but in reality it is not as simple as it sounds when it comes to risks and profits are not as glorified as mentioned in media or newsletters.
I did NOT realize you guys or moderators are so swallow they will delete or disappear my posts due to open ended question to a hypothetical situation.
It seems like this message board is, going to ER after leg is broken and I am more interested in what are consequences of broken leg and what should one can do not to break it in first place!
